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Jailing of Ilgar Mammadov, Journalists and Anti- Corruption Activists

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Jailing of Ilgar Mammadov, Journalists and Anti- Corruption Activists CASE Nº22 Southern Gas Corridor Jailing of Ilgar Azerbaijan Mammadov, Oil and gas journalists and anti- EBRD,WB,EIB, ADB,AIIB corruption activists Lawyer and activist Ilgar Mammadov has worked for Aliyev. Four years later in January 2017, still behind bars, years to expose corruption scandals involving the ruling Mammadov penned an “Open Letter from an Inmate of Aliyev family of Azerbaijan, particularly the family’s use the Southern Gas Corridor”5 stating that “[i]nternational of external funding for political oppression.1 His efforts investment in fossil fuel extraction is making me and landed him in jail in 2013. Oppression of journalists and other Azerbaijani political prisoners hostages to the Aliyev human rights activists like Mammadov is endemic in regime.” Mammadov does not oppose the pipeline Azerbaijan. In 2016, dozens of human rights defenders project itself. What he has criticized is the ability of were behind bars on trumped up or wholly fabricated the government to use the importance of the project charges (some Azerbaijani human rights groups put for Western governments and donors to successfully the number closer to 150).2 But nothing has triggered neutralize criticism of the country’s crackdown on a fiercer crackdown than the questioning of the domestic opposition. government’s oil and gas aspirations. Between 2013 and 2014, the government of Azerbaijan began consolidating financial control of gas projects in the country. The ambitious series of projects and pipelines designed to deliver natural gas from the Caspian Sea to Europe, started with the Shah Deniz Gas field, funded with US$700 million in loans from the European Bank for Reconstruction and Development and US$250 million from the Asian Development Bank.6 It eventually grew to include the Trans-Anatolian Natural Gas Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP). The banks have publicly supported this infrastructure as components of “sustainable, inclusive and private sector- led growth,” theorizing that democratic transition could be facilitated through stronger ties to Europe, which Ilgar Mammadov might weaken Azerbaijan’s growing ties to Russia.7 Each Before being imprisoned in February 2013, Mammadov segment of what is known as the Southern Gas Corridor was chairman of the political opposition group REAL (SGC) pipeline is partially owned by the government (Republican Alternative) and a civil society member of of Azerbaijan, either directly or through the State Oil the Extractives Industry Transparency Initiative (EITI).3 Company of the Azerbaijan Republic (SOCAR) or a As he reported just days after being arrested, one of the subsidiary. For this reason, it is a lightning rod for anti- main reasons for his detention was his rejection of the corruption and transparency advocates. government’s proposed legislative amendments aimed at eliminating transparency of corporate ownership. While the government of Azerbaijan began soliciting Mammadov said the bill would create “a more clandestine foreign finance for the SGC projects in 2012, the environment for stealing the oil money.”4 Another was currency crisis of 2015 triggered a borrowing spree, the fact that he was planning to run for president. which multilateral development banks were happy to support, seeing lending as a way to drive a wedge By opposing legislation that would embolden corrupt between Russia and Azerbaijan. In March of 2016, the actors, and building a public presence to contest the European Investment Bank (EIB) approved a EUR932 presidency, Mammadov became a critical threat to million loan for the Turkey portion of TANAP.8 1 CASE Nº 22 - Southern Gas Corridor CEE Bankwatch Development financiers have placed a strong The route of the Southern Gas Cooridor. emphasis on the importance of transparency in the extractive industries as a requisite for development. The Asian Development Bank, the World Bank, the Three months later, in March 2017, EITI suspended European Investment Bank, and the European Bank for Azerbaijan, and Azerbaijan announced its withdrawal Reconstruction and Development, have all endorsed from the initiative the following day.15 Civil society the EITI and cited it as a critical factor in investment groups again urged EBRD to honor its mandate decisions in the extractive industries. In September enshrined in Article 1 of its founding agreement to 2016, Riccardo Puliti, director on energy and natural fund only those countries committed to the principles resources at the EBRD, expressed concern over the of multi-party democracy and pluralism, and to tenuous status of Azerbaijan in EITI. Puliti noted that ensure progress on the EITI conditions and release of “if there is no progress [on Azerbaijan’s transparency Mammadov before granting any additional funding. In performance], it will be quite difficult to justify a large response, EBRD stated that it remained committed to its amount of finance [for the SGC].”9 Article 1 mandate, “as part of which we closely follow the situation with regards to human rights and developments With the government’s increasing attacks on civil in the operational environment for civil society.”16 society, Azerbaijan’s membership in EITI came under further doubt, and in October 2016, EITI asked On June 19, 2017, the EBRD approved an additional Azerbaijan to take corrective measures.10 Civil society US$100 million loan for Shah Deniz, followed by a groups urged the banks to abstain from financing US$500 million loan for SGC.17 The following July, the extractive industries projects in Azerbaijan until World Bank’s guarantee agency, MIGA, guaranteed an the EITI’s recommendations regarding civil society additional US$1.1 billion syndicated loan to SGC, held engagement were implemented.11 Instead, as the by seven private banks.18 A few days after the fifth crackdowns intensified, so did foreign investment in the anniversary of Ilgar Mammadov’s detention, and despite government’s pipeline. further objections raised by civil society, on February 6, 2018, the European Investment Bank (EIB) approved In December 2016 the World Bank approved a US$400 a US$1.5 billion loan for the TAP.19 In July the EBRD million loan to Turkey and a US$400 million loan to approved a US$583 million loan for TAP.20 Azerbaijan for TANAP as well as a US$950 million credit guarantee.12 That same month the Asian Infrastructure Mammadov was finally released from detention Investment Bank invested US$600 million in TANAP,13 in August 2018. He remains on probation for the while the ADB approved a US$500 million investment in remaining two years of his wrongfully-issued sentences, Shah Deniz alongside a US$500 million sovereign loan so he is not free to travel, speak out, or engage in directly to the government.14 political activism.21 2 CASE Nº 22 - Southern Gas Corridor Interests, Azerbaijan Case Study,” CEE Bankwatch Network, November 2015, http://bankwatch.org/sites/default/files/EaP-energy-Azerbaijan.pdf. 8 “EIB agrees EUR 8 billion investment in education, energy, telecom and local businesses,” European Investment Bank, March 15, 2018 [Press Release], http://www.eib.org/infocentre/press/ releases/all/2018/2018-065-eib-agrees-eur-8-billion-investment- Endnotes in-education-energy-telecom-and-local-businesses.htm. 1 Ilgar Mammadov, “Adam kimi inqilab, insan simalı dövlət” [“A Human Revolutionary like a Human Being”], Tərəqqipərvər. 9 Matthew Vella, “Azerbaijan: Caspian gas and civil society İlqar Məmmədovun bloqu [Progressive. Ilgar Mammadov crackdowns,” Malta Today, April 21, 2017, https://www.maltatoday. blog], https://ilgarmammadov.livejournal.com/. com.mt/environment/energy/76419/azerbaijan_caspian_gas_ and_civil_society_crackdowns#.WwQ8NEiUvIV; Ilgar Gurbanov, 2 “Azerbaijan: Events of 2016,” Human Rights Watch, 2017, https://www. “Suspension of Azerbaijan’s EITI Membership: Repercussions for hrw.org/world-report/2017/country-chapters/azerbaijan; A Unified List the Southern Gas Corridor,” The Jamestown Foundation, March 28, of Political Prisoners in Azerbaijan, European Stability Initiative, November 2017, https://jamestown.org/program/suspension-azerbaijans- 25, 2016, https://www.esiweb.org/pdf/List%20of%20Political%20 eiti-membership-repercussions-southern-gas-corridor/. Prisoners%20in%20Azerbaijan%20-%20November%202016.pdf. 10 Board Paper 36-5-A, Azerbaijan: Assessment of progress with 3 Giorgi Gogia, “Dispatches: Azerbaijan’s Too Predictable Crackdown,” corrective actions 1(i-iii), Extractive Industries Transparency Human Rights Watch, March 18, 2014, https://www.hrw.org/ Initiative (EITI) March 6, 2017, https://eiti.org/document/ news/2014/03/18/dispatches-azerbaijans-too-predictable-crackdown. azerbaijan-assessment-of-progress-with-corrective-actions-1iiii. 4 In the case of Ilgar Mammadov v. Azerbaijan (no. 2) (The 11 Letter from Jessica Evans, Senior Advocate on International Financial European Court of Human Rights, 2017), https://www.navigator. Institutions at the Human Rights Watch, and Mark Fodor, Executive nl/document/id66069a385c4144b9bf7aec7fc0e37141/ecli-ce- Director of the CEE Bankwatch Network, to Werner Hoyer, President of the echr-2017-1116jud000091915-ehrm-16-11-2017-nr-919-15. European Investment Bank, “Azerbaijan: Crackdown on Critics Undermines Sustainable Development,” November 23, 2016, https://bankwatch.org/ 5 Ilgar Mammadov, “A letter from a an inmate of the Southern wp-content/uploads/2016/11/letter-HRW-EIB-Azerbaijan-23Nov2016.pdf. Gas Corridor,” Open Democracy, January 20, 2017, https:// www.opendemocracy.net/od-russia/ilgar-mammadov/
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